Credit Card Settlement: Cash Is King

The Department of Justice accused Visa, Mastercard and American Express of anti-competitive business practices that violate Federal antitrust laws. Visa and Mastercard have already settled, while AMEX is fighting the suit.

The charges surround merchant or swipe fees that businesses pay credit card companies to process charges. These fees range from 1.5 - 5 percent of the value of the purchase, or $35 billion in annual fees to credit card companies.

I discussed the law suit, settlement and why you may be saying cash is king a little more often with CBS2.

The bottom line: after the courts grant approval to the deal in a couple of months, merchants will be permitted to charge less if customers use cards that have lower fees, amounting to millions of dollars in savings for consumers.

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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